Countries in Latin America are facing the prospect of creating safe and regulated crypto markets. The boost came from Brazil, whose legislative authority approved a regulatory framework for digital resources. On 29 November 2022, the Brazilian government voted in favour of a law under which all crypto exchanges and other digital service providers operating there will be subject to the supervision by the country’s central bank.
According to the new rules, crypto exchanges will need to have a registered office in Brazil. The exchanges will be punished for failure to obtain a licence, which will be required of all crypto service providers. Supervision of crypto service providers’ activities is to be the responsibility of the central bank, and the primary regulator will be Brazil’s Securities and Exchange Commission.
The implementation of new rules will be spread over time. Passing the law by Brazil’s legislature marks a major step towards crypto regulation for South America’s largest economy. It will probably encourage other countries in Latin America to make efforts to finalise their own crypto regulatory framework.
The draft act now awaits signature by Brazilian President. The new law is to deliver more legal certainty to investors and crypto firms, and clients using crypto products and services.
Source: https://hub.elliptic.co/analysis/crypto-regulatory-affairs-brazil-approves-framework-for-digital-assets/?utm_campaign=Elliptic%20Essentials%20%7C%20Crypto%20Regulatory%20Affairs&utm_medium=email&_hsmi=236793949&_hsenc=p2ANqtz-_-j4t-ZERNbid3ODdwUplEBRSTEbtZjXk24N89F5UI0Kha8YLGPJpaYdgw9upOI3aNVmgdOIW_NS4FDsLLbpyqi5GQ0RyyOVMtziaJHRIJ3tCLaag&utm_content=236793949&utm_source=hs_email